Nationwide Mutual Insurance Company (Nationwide) has completed its previously announced agreement to combine with Harleysville Mutual Insurance Company (“Harleysville Mutual”) and Harleysville Group Inc. (NASDAQ:HGIC) (“Harleysville Group”). Now that the closing under the merger agreement has happened, Harleysville Mutual policyholders are now policyholders and members of Nationwide Mutual. Nationwide Mutual acquired all of the publicly held shares of common stock of Harleysville Group for $60.00 per share in cash. Accordingly, Harleysville will file the required documents with the SEC to voluntarily delist Harleysville Group’s publicly traded stock from the NASDAQ. The total consideration paid to Harleysville Group’s public stockholders in the transaction is approximately $834 million.
Steve Rasmussen, Nationwide, Chief Executive Officer (Photo: Business Wire)
Harleysville is now a part of Nationwide’s P&C independent agency business unit under the Harleysville brand. In addition, Harleysville’s current headquarters in Harleysville, PA, will serve as an integral part of the combined company’s national, independent agency-based platform. Michael Browne, the former President and Chief Executive Officer of Harleysville, is now the President and Chief Operating Officer of Harleysville.
“The completion of the transaction sets Nationwide apart from the competition as a top independent agency partner in the United States,” said Nationwide Chief Executive Officer Steve Rasmussen. “At the same time, Nationwide maintains a strong commitment to our exclusive agency partners. Combined, we are able to accelerate our strategy to make it easy for agents and customers to do business with Nationwide however they desire. Moving forward, we are committed to making strategic investments in all of our distribution channels as they all make a vital contribution in our mission to provide protection and retirement solutions for our members.”
“This merger means great things for the employees, agents and members of Nationwide, Allied and Harleysville,” said Browne. “Together, we are establishing a formidable network of independent agency companies with a national reach. In turn, the merger will help both Harleysville and our agents increase market share through a broader portfolio of insurance, financial and banking products and services to current and future policyholders.”